REP licence coverage for zip fasteners upheld; Customs could not treat the imported goods as unauthorised or confiscable.

Imported zipper chain in rolls was covered by the transferable REP licence because the licence expressly permitted goods listed in Appendix 17 of the Import Policy, and zip fasteners appeared in that list without any specific restriction against the item itself. Customs could not import a percentage restriction from the broader product-group heading where the licence did not apply that limit to zip fasteners. As the goods were also within the licence value and no other objection survived, they were not unauthorised or liable to confiscation, and refusal to release them was unsustainable.

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Issues: Whether the imported zipper chain in rolls was covered by the transferable REP licence and, if so, whether the Customs authorities could withhold release by treating the goods as unauthorised and liable to confiscation.

Analysis: The licence expressly permitted import of the goods described in Appendix 17 of the Import Policy of 1982-83, and the endorsement referred to restrictions, if any, mentioned in the relevant column. The imported item, zip fasteners, appeared in the relevant list without any specific quantum restriction against that item itself. The Customs objection rested on importing a percentage restriction from the product group heading, but the licence did not incorporate such a restriction for zip fasteners. The value of the goods was also within the licence value, and no other objection was pressed by the Revenue.

Conclusion: The goods were covered by the licence and were not liable to be treated as unauthorised or confiscable; the refusal to release them was unsustainable and the petitioner succeeded.

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